Since July 2008, people wishing to start their own business have the option of choosing to be an Auto- entrepreneur. Before this date the prospect of starting a business in France was rather daunting, particularly for non French speakers.
Apart from the language issue, which makes an already complicated process even harder, setting up a company is daunting because of the employer charges which have to be paid. During a company's first two years of activity the charges due are fixed as the revenue is unknown. In the first year these are relatively light, but in the second year it is assumed that your business has grown and the rate is higher. The unwary can find themselves with a bill much higher than their income, this is all sorted out in the third year but it is important to plan your budget accordingly. There is also the issue of the paperwork demanded by the administration.
The Auto entrepreneur status removes this potential financial constraint, and lightens the paperwork load. An Auto- entrepreneur only has to declare what he has earned each month, and his charges are calculated accordingly. Thus, if he has earned nothing he pays nothing. Normally the status is reserved for individuals wishing to create a complimentary activity or test a business idea. In terms of paperwork, the company only has to provide a ledger of receipts. The only problem with this status is that the income of the company is limited at around 30,000€ per year. This status is very interesting for English teachers wanting to step out on their own.
In France there are different options for teachers. The first, and perhaps the easiest for a new arrival, is to find a job in one of the numerous language schools. This option gives you the opportunity to gain experience and have some security. The downside is the pay which can start from 12€ per hour. Another option is to try and work in a University, Engineering or Business school. Here the pay is often better, starting at 40€ per hour. The problem is you often need a main employer, and your statue is 'vacataire' or freelance. Basically you need to have an employer who signs a document saying he is your main employer. Most teachers who follow this route have a part- time contract in one school, then find some work as a vacataire. The danger of this option is that if you limit your hours with your main employer, to earn more as a 'vacataire', he may not wish to sign the document stating he is your main employer. It is important to maintain an equilibrium, giving enough hours to your main employer to keep him happy.
The third option is to use a 'société de portage', these are companies who do all your paperwork for a commission. You are employed by them, but you must find the work, they then establish a contract and organise the billing, etc. The advantage is that they can be your main employer, however, they take a commission on your earnings. Finally the last possibility is to set up your own company. As mentioned before, for non- native speakers this option was the most daunting. However, thanks to the new status of Auto- entrepreneur things have become a lot easier. In theory you become your main employer. More information can be found at http://www.lautoentrepreneur.fr/images/3_Guide.pdf
I will, however, finish with a word of warning. In the last paragraph I said, 'In theory you become your main employer'. The status is very new, and Universities, etc who demand a main employer are just beginning to deal with the new status. Some have accepted it as the main employer others not. It is a good idea to make sure that your potential employer will accept the status of Auto- entrepreneur as main employer before jumping in.
